Innolux Corp (群創), a flat-panel manufacturing arm of Hon Hai Precision Industry Co (鴻海精密), yesterday said it is expanding its business scope by supplying higher-margin displays to retailers and convenience store chains to build up its brick-and-mortar smart store system.
Innolux made the remarks after announcing its partnership with Taiwan FamilyMart Co (全家便利商店), the nation’s second-largest convenience store chain, supplying displays and advanced technologies to build smart stores similar to Amazon’s first brick-and-mortar store “Amazon Go,” allowing shoppers easier access to promotion information and to do self-checkouts for online purchases.
In its first smart store venture with FamilyMart at its plant in Tainan, Innolux helped install more than 100 displays — mostly in the form of digital signage ranging from 23-inch to 58-inch displays.
Photo: Lisa Wang, Taipei Times
The panelmaker also helped build an Internet of Things (IoT) network by integrating facial recognition technology, cameras and sensors to collect data for analysis of consumer behavior.
FamilyMart also benefits in the form of a smaller headcount and automatic security.
“This is another step forward for Innolux,” chairman Jim Hung (洪進揚) told reporters on the sidelines of a news conference in Tainan.
“The company mainly sells panels to makers of TVs, mobile phones, or tablets. It is a B2B [business-to-business] model. Now, we are expanding our reach to B2C [business-to-consumer],” he said.
Hung assumed his position two months ago to assist Innolux in restructuring its product and technology portfolio by leveraging the strength of its parent, Hon Hai.
Smart store total solutions offer higher gross margins, Hung said.
“This is an area that enjoys faster growth rates than established product lines. The growth [for smart store solutions] is in the double digits, compared with a single-digit for current products,” Hung said.
Innolux plans to build 20 more smart stores for FamilyMart in Tainan later this year.
It is also entering final negotiations with two or three wine retailers, cosmetic stores, pharmacies and hypermarkets to build smart stores in Taiwan and China, he said.
Digital signage currently contributes minimal revenue to Innolux, but Hung said he expects strong growth next year with more projects in the pipeline.
To offer total smart store solutions, Innolux early this year expanded its public information display team to include displays for the “new retail” segment.
The company plans to expand its smart store business staff from 10 now to 30 by the end of this year, Innolux vice president James Yang (楊柱祥) said.
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